This invention relates generally to point-of-sale computer systems of the type used in retail stores to record sales transactions. More particularly, the invention relates to point-of-sale systems capable of recording the purchasing activities of consumers, household by household. Discount coupons have long been used in the packaged goods industry to promote the sale of specific items to consumers. Many discount coupons are distributed by mail, or as inserts (known as free standing inserts) in newspapers and magazines. This method of distribution has the major drawback that it is not "targeted" to consumers most likely to use the discount coupons. Consequently, mass distribution of discount coupons is not only wasteful in terms of paper and other costs, but results in a very low rate of redemption of the coupons. Most consumers simply ignore them or, if they use coupons at all, discard them because of lack of interest in the specifically promoted products.
A revolutionary change in techniques of discount coupon distribution began with the system described in U.S. Pat. No. 4,723,212 issued to Thomas L. Mindrum et al., entitled "Method and Apparatus for Dispensing Discount Coupons." In this system, coupons were generated and distributed in the retail store, based on the products purchased by the consumers. If a consumer purchased a "triggering" product that had been previously selected as part of a promotion, the consumer would receive a discount coupon upon paying for purchased items at a checkout stand. The coupon handed to the consumer typically provides for a discount on a competitive or complementary product when the customer returns to the store on a subsequent visit. Thus, in the system described in the Mindrum et al. patent, discount coupons generated in the store were distributed only to consumers who had been "targeted" because of their purchase of competitive or related products. U.S. Pat. No. 4,910,672 issued to George W. Off et al., having the same title, disclosed additional features of the system described in the Mindrum et al. patent. A known extension of the technology disclosed in these patents is to generate in-store coupons based on the prior shopping behavior of individual customers. The purchase transactions of consumers, who are identified by identification cards or other means, are recorded and discount coupons are generated in the store on a later store visit, using the purchasing history recorded in prior visits.
Although this extension of the system described in the Mindrum et al. and Off et al. patents successfully targets many consumers with greater success than if prior shopping history were not used, not all consumers receiving coupons in the store remember to bring back for redemption, and some have no routine practice of saving them for the next store visit. In some respects, the old approach of mailing promotional materials is still the best way to reach consumers, but mass mailings have in the past have not been targeted on the right consumers, so have been highly inefficient and wasteful. Accordingly, there is still a need for improvement in targeted techniques for distribution of coupons and other incentives. The present invention fulfills this need, as will become apparent from the following summary.